Planned amendments to the Law on Tax Application in Free Ports and Special Economic Zones do not contribute to business development in municipal areas. They will, however, create a less transparent, controversial an environment generally unfavourable for investments, as reported by representatives of Ventspils nafta terminals.

As noted by the company’s Director General Lars Panclaf, application of tax discounts should serve as a strategic tool for the state administration, not be allowed to be used freely by municipal government. Approval of amendments was rushed and there was no careful consideration of the possible effect on the industry. In addition, decision-makers did not take into consideration the opinion of influential entrepreneurs directly involved in the industry.

«VNT has been experiencing the situation when Ventspils City Council and Ventspils Freeport actively delay the company’s development for a long time. This particularly applies to the situation with delays in regards to the issue of a permit to VNT until the company installs vapour recovery equipment. The matter regarding the location for VRE on port territory has been resolved, but the matter with the issue of a permit is at a standstill. One does not have to be exceptionally clever to understand that amendments will be mainly applied against VNT,» – Panclaf predicts.

He also noted that a stable and transparent legal environment is one of the main factor that, along with the port’s performance, oil product transportation costs and the terminal’s work efficiency, affect VNT’s ability to attract cargoes and develop further.

«VNT co-owners have invested several million euros in the terminal and have started a business in Latvia based on transparent business environment. If we feel investors’ rights are breached, we will definitely defend our interests using all possible means in the country and outside in full accordance with EU regulations and international law,» – added Panclaf.

He also emphasized that, according to statistical data for Q1 2016, a decline was noted in all cargo transport sectors: international cargo transport by rail declined 21%, cargoes carried in transit declined by nearly 49.5%. The same applies to cargo transports to and from Latvia’s ports – 21% decline.

«This year’s planned amendments create serious concerns for investors, including VNT, in regards to having a transparent economic situation and legal certainty in Latvia, which is a warning to the government on just how serious the situation is. It is necessary to secure support for businessmen and work together to find new solutions to assist long-term development of Latvia’s companies, ports, municipalities and Latvia as a whole,» – as concluded by the company’s head.

Members of the European Parliament have overwhelmingly supported what has been negotiated upon in the joint EU-UK progress report in Brexit talks and have recommended Brussels to move on to phase two negotiations on the future relations of the parties.

The silent period – the time for Christmas wishes – has begun. Snow covers Tukums, and the city slowly becomes white. Everything is quiet at Pils ielā. The phone rings, interrupting a quiet moment of watching snowflakes fall under the light of a lantern. «You’re here for us, aren’t you?» BNN goes to interview manager of Merci Cafe Anija Rabkeviča (23) and cafe’s founder Rinalds Pluģis (22). They tell about their experience of ‘surviving’ in Latvia.

Latvian Transport Ministry’s developed development plan for the transit industry, which was presented to Saeima’s National Economy Committee this week, states that raising competitiveness in the country requires subsidizing railway cargo transports.

Only political discussions were held proposal on the merge between Latvijas Mobilais Telefons and Lattelecom, and it is good that this matter has been taken off the agenda, said LMT President Juris Binde in an interview to Rīta Panorāma programme of LNT.

In the Estonian capital, the result of a legal dispute between water utility company Tallinna Vesi and the Estonian Competition Authority is that consumers are considered to be able to claim tens of millions of euros in compensation for overcharged water tariffs that have been in place for a number of years.

It was decided at a meeting of representatives of Latvian Association of Regions (LAR) that the party will not work with For Latvia’s Development. The party has also decided to start in 13th Saeima elections with its own list of candidates.

Italy has declared a state of emergency in its natural gas sector as a large explosion at a major natural gas hub in Austria killed one person, injured at least 18 and is prone to affect supplies in central Europe.

«To maintain GDP growth rate, the government should address priority matters like prevention of mandatory procurement component costs and electricity price rise to reduce costs for both businesses and residents. It is very important for employers to have the energy policy closely tied with production, because processing industry is the main driving force behind development of Latvia’s national economy,» says Latvian Employers’ Confederation (LEC) Director General Līga Meņģelsone.

The clients of Irish low-fare airline Ryanair will face inconvenience before Christmas as pilots and crew announced industrial action seeking to achieve union recognition and better conditions in the company, which is criticised by unions that it fails to offer pilots the same pay and conditions as its rivals.

Money laundering activities and grey economy are in decline in Latvia. However, corruption in the country’s public sector and smuggling activities remain serious problems for the national economy, as noted in the report on unaudited economy, corruption in the public sector and money laundering activities in Latvia published by Latvian Chamber for Commerce and Industry on Tuesday, 12 December.

Former Georgian President, now opposition activist in Ukraine, Mikheil Saakashvili, has been released from arrest by a judge, who denied a request from prosecutors to subject him to house arrest, but the case against him continues.

Latvia’s Justice Minister Dzintars Rasnačs has met with his Macedonian colleague Bilen Saliji, who arrived in Latvia to sign the Memorandum for Cooperation between Latvian Justice Ministry and Macedonian Justice Ministry.

The majority or 65% of Latvian respondents mentioned that whenever they make travel arrangements, they try to avoid regions in which there is a high probability of terrorist attacks or natural catastrophes, according to the latest Latvia Tours Travel Index.

The only offer extended to the now former state secretary of Latvia’s Interior Affairs Ministry Ilze Pētersone-Godmane to help her stay in state administration was the offer to become a candidate for the most of head of Riga Eastern Clinical University Hospital, as reported by Latvijas Avīze.

«Latvia continues supporting the solution that can be achieved through direct talks between Israel and Palestine with compliance of interests of both sides and making Jerusalem the capital of both countries. The European Union has to remain a reliable partner for Israel and Palestine. We have to continue the open dialogue with both sides and ensure EU’s unity in the Middle East peace process,» says Latvian Foreign Affairs Ministry’s parliamentary secretary Zanda Kalniņa-Lukaševica.

Countryside tourism businesses are threatened by unfair competition and growing bureaucracy, as emphasized by Latvian Countryside Tourism Association Lauku ceļotājs after discussing this season’s results at four regional business seminars.

As Estonia seeks to relocate part of government agencies out of the capital Tallinn, Estonian government ministers have been reminded that by the middle of January an action plan is required from them on the relocation of the central offices of 13 Estonian state institutions.

The volume of exports continued growing in November, reaching EUR 1,070,600 at the end of the month and setting a new record for exports for one month’s time. This export index is the highest in the history of statistical records in Latvia, Finance Ministry stated in its report, commenting on data from the Central Statistical Bureau.

Governments of European Union member states are aware of torture and abuse of refugees and migrants in Libya, Amnesty International has stated, insisting that trying to reduce migration, the EU is actively financially supporting a «system of abuse and exploitation» on the Mediterranean coast of Libya.